On the supply side, the daily billet production of 24 steel producers in Tangshan decreased by 2,000 tons week-on-week during the period of May 10-16, averaging 43,500 tons/day. This decline was due to some plants slightly reducing their production because of unstable billet sales, leading to significant changes in the supply-demand balance.
As of May 22, the billet price at Shandong Port increased by 40 yuan/ton (5 USD) from the previous trading day, reaching 3,620 yuan/ton (499 USD).
Meanwhile, the billet price in Tangshan increased by 5 USD to 502 USD.
The gradual implementation of various favorable macro-level policies plays an important role in supporting the bottom of steel prices. On the industrial side, coal mine accidents and iron ore futures exceeding the 920 yuan (126 USD) level have led to increased costs and continued production enthusiasm among steel mills. The combination of macroeconomic and industrial factors is also pushing steel prices up.
Market traders' sentiment is strengthening, with macroeconomic policies continuing to increase and their implementation significantly improving compared to previous periods. In this period where the general supply-demand conflict of finished products is not significant, the interest of steel mills in these policies has sharply increased. With the rising demand for raw materials and the support of costs, the ex-factory prices of steel producers remain high.
Market traders generally expect prices to rise, and with the approaching construction periods of terminal projects, transactions continue. Steel prices are expected to steadily increase in the range of 10-30 yuan/ton (1-4 USD) tomorrow.
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